Stock Exchange: Intellectual Capital Disclosure and Profitability

Intellectual capital is a key element in improving a firm assets andemployee in order to increase productivity as well as to sustaincompetitive advantage. Human capital is the combined capabilities,knowledge, skills, experience, innovativeness and problem – solvingabilities of each individual’s knowledge. The study of therelationship between profitability and disclosure of intellectualcapital components in the Companies listed on the Tehran StockExchange is evaluated. For the operationalization of disclosure ofintellectual capital and its components, the checklist Li et al (2012)and Return on Assets ratio were used for profit. Results of 44 firms(189 firm-years) during the period 2011- 2013 indicates that at 91percent, positive and significant relationship between profitabilityand disclosure of intellectual capital there. So that the, by increasingand improving profitability, companies have an incentive tovoluntarily disclose information on intellectual capital. The othervariables were observed, significant and positive relationshipbetween firm size and disclosure of intellectual capital, humancapital, customer capital there, growth opportunities and disclosureintellectual capital. A positive relationship was seen betweenfinancial leverage and disclosure customer capital there.

Stock Exchange: Intellectual Capital Disclosure and Profitability Keywords:

Stock Exchange , Intellectual Capital Disclosure , Profitability